Gold Trading 101: Another Day of Buying Gold and Silver in Tokyo.
Today I went with another friend to buy some more physical gold and silver bars. It seems that I have been quite lucky lately. When the markets in Tokyo opened today, the price was at approximately $1,828 per ounce. As I look at the charts and how the prices are going up in the US market ($1,878 as of this writing), I only wish I had bought more. Is it my vast experience and knowledge of the precious metals market that helps me catch these trends? Nope, it is just luck and knowing that the long term trend for gold and silver is up, up, and up.
Just for your information, did you know that starting from September, we historically see an increase in Gold prices to the end of the year? Take a look at the data below:
2005 Sept. 1st = $439.60, Dec. 1st = $513.60
2005 $Increase = $73.40, %Increase = 16.70%
2006 Sept. 1st = $621.00, Dec. 1st = $632.00
2006 $Increase = $10.95, %Increase = 1.76%
2007 Sept. 1st = $672.00, Dec. 1st = $833.75
2007 $Increase = $161.75, %Increase = 24.07%
2008 Sept. 1st = $822.25, Dec. 1st = $869.75
2008 $Increase = $47.50, %Increase = 5.78%
2009 Sept. 1st = $955.00, Dec. 1st = $1,087.50
2009 $Increase = $132.50, %Increase = 13.87%
2010 Sept. 1st = $1,246.50, Dec. 1st = $1,422.00
2010 $Increase = $175.50, %Increase = 14.08%
According to my friend, the wait to sell scrap gold was 4 hours at a popular gold dealer in Tokyo. But if history repeats itself (and we have the data to back it up), wouldn’t you want to go and “Buy” gold rather than “Sell” it?
By Mark Hiroshi Willis (Tokyo, Japan)
Specializing in 1 carat and up diamond engagement rings.
info@diamonds.co.jp
Gold Trading 101: Buying and Selling in Tokyo, Japan.
I am not a professional analyst when it comes to trading in gold and other precious metals, but I still do it almost on a daily basis for my diamond and jewelry business.
Two days ago I timed the market perfectly and sold my trading position of scrap gold. Since then, gold prices have plummeted by over 7%. Will I ever have such luck with my timing again? I seriously doubt it, but please allow me to toot my horn for a few more days.
What was the reason that made me sell. First off, the gold price was skyrocketing and I was getting a little uneasy. I could feel a correction coming around the corner. Also seeing the long line of old ladies in the market selling their hoard of gold coins, gold bars , and jewelry made me do it. So no there was no real technical data, it was a just “Gut” feeling.
If you are kinda disappointed that my Trading Method does not include some sexy algorithm, then let me add just a little more to my explanation.
Every month there are options expiration dates. Here we see a lot of traders unwinding there positions. Therefore, if I have to sell, I typically will do it a few days before they do. This time the date was the 25th, and I sold on the 23rd (please remember that we also get an extra half day here in japan before the markets in the US open up).
Now here is the million dollar question. When do we buy back in? I probably won’t get it right, but I am looking within the next few days. From past experience I have always bought expensive, but when I look back at those prices today, I sure wish I had bought a lot more at those expensive prices. Just remember, though gold is down 7% from two days ago, it is still up 12% this month.
Both history and human nature do not change, therefore long term trend is for gold and silver prices to continue to go up.
